NEWS: NIGERIA - NERC outlaws fixed charges by power companies

THE Nigeria Electricity Regulatory Commission (NERC) has finally bowed to pressure and protest from Nigerians against the payment of fixed tariff for services not rendered by electricity distributors.


Similarly, no electricity distribution company will henceforth allowed to connect new customers without metering them. NERC said the development was to close the wide metering gap of over 50 per cent and reduce high incidence of collection losses in the Nigeria Electricity Supply Industry (NESI).

Since electricity distribution was handed over to private firms over two years ago, consumers across the country have been subject- ed to paying fixed charges ranging from N220 to N750 or even more depending on the location.

The development has pitched the electricity regulator (NERC), against Nigerians who felt cheated that only the companies have been enjoying the protection from the agency while they continued to pay heavily fees without commensurate power supply.

It took the pressure from the electricity consumers at various levels and the i‎ ntervention from the National Assembly to compel NERC to stop further fixed tariff charges to allow consumers pay only for what they consume in a month or within certain payment period.

Meanwhile, NERC had during the weekend ordered distribution companies to stop henceforth the charges, while the next billing period will no longer charge customers monthly fixed charges.

Fixed charge is that component of the tariff that commits electricity consumers to paying an approved amount of money not minding whether electricity is consumed during the billing period or not.

But under the new tariff regime, electricity consum- ers will now only pay for what they consume from month to month.

According to the Chair- man of NERC, Dr. Sam Amadi, “this is good news for electricity consumers who have long asked for a just and fair pricing of electricity.

“The regulatory commission had promised to address all the complaints against fixed charges through a regulatory process that promotes investments in the electric- ity industry without unfairly burdening electricity consumers. This is in line with its mandate to be fair in all its regulatory interventions.”

Although the new tariff regime comes with an increase in energy charges, all electricity consumers (residential as well as commercial) will no longer pay fixed charges, so their total bills will depend on the electricity they actually consume and may be reduced when they conserve electricity.

Consumers will no longer be spending money every month to pay for fixed charges even when they do not receive electricity in their homes and businesses.


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